🏷️ This Bank Stock Is On Sale

Plus, why ASML is tumbling this week

July 18, 2024

Pencils down, it’s time for lunch. Here’s what you missed this morning:

  • 🟥 | Market Snapshot: The Nasdaq Composite fell by more than 1% as investors continue to rotate out of tech stocks.

  • 💼 | In focus: The data is in… Last week, the number of US citizens applying for unemployment insurance benefits increased by 243,000. This is significantly above the 229,000 initial jobless claims expected and marks a 20,000 increase from the prior week.

  • 🏦 | Noteworthy: The European Central Bank decided to hold its key interest steady, as it is not yet ready to follow up on its quarter percentage point reduction in June. The ECB noted that price pressures “are still high” and will likely remain above the bank’s 2% target well into the next year.

  • 🏷️ | The Midday Trade: This Bank Stock Is On Sale. Scroll down for more.

Plus, today’s partner helps you navigate the regulatory process in the medtech arena.

TOGETHER WITH BSEM

The medtech arena is not the easiest to navigate given how many kinds of companies are in it. It’s all about finding emerging players like BSEM who have successfully navigated the regulatory process (a real barrier to entry) and show real growth. 

Zack’s Small Cap Research recently increased its price target to $23.25, recognizing the company’s value after it reported Q1 financial results.

The firm believes is an opportunity to invest in a company that is both providing a vital service to the human population and providing economic value to shareholders when doing so. 

STREET STATS

MORNING MOVERS

DPZ: Shares of Domino’s Pizza plunged after reporting mixed Q2 results, with US store sales growth coming in slightly less than expected (MW)

UAL: United Airlines’ stock slipped despite posting a 23% jump in profit last quarter. However, it also shared a disappointing current-quarter outlook (CNBC)

DFS: Shares of Discover Financial rose after reporting that its profits surged to $1.53 billion in the second quarter (MW)

BYND: Beyond Meat’s stock tumbled after reports that the company is engaged with a group of bondholders to discuss restructuring its balance sheet (WSJ)

WBD: Shares of Warner Bros Discovery popped after a report that the company is considering a variety of options to boost its struggling stock (FT)

TOP CALLS

ESAB: Stifel Maintains Buy on ESAB, Lowers Price Target to $120 (Trade It)

NXP Semiconductors: Barclays Maintains Overweight on NXP Semiconductors, Raises Price Target to $330 (Trade It)

Analog Devices: Barclays Maintains Equal Weight on Analog Devices, Raises Price Target to $250 (Trade It)

Banner: Stephens & Co. Reiterates Overweight on Banner, Maintains $53 Price Target (Trade It)

Synchrony: Goldman Sachs Maintains Buy on Synchrony Financial, Raises Price Target to $56 (Trade It)

Johnson & Johnson: RBC Capital Reiterates Outperform on Johnson & Johnson, Maintains $175 Price Target (Trade It)

THE MIDDAY TRADE

Trading Below Market Value

According to Berenberg, Nordea Bank (NRDBY) shares are currently trading at a price that is too low to be overlooked. The bank, based in Finland, has seen its stock drop over 7% YTD.

Yet, in its recent reporting of first-half results, net profits rose to $2.89 billion and net interest income grew 7% year-over-year. According to a bank executive, it was able to accomplish this despite a slow economy and geopolitical issues.

Sounds Fundamentals

Berenberg analysts believe that the stock’s strong fundamentals and seemingly discounted price make it a potentially lucrative investment opportunity. Additionally, the firm stated that its P/E premium, compared to its peers, is coming down as well.

According to analyst Hugh Moorhead, the bank’s stock is currently trading at 7.5x expected 2025 earnings, which he feels warrants a buy rating.

Strong Yields

The bank has delayed its share buyback plans until 2025, but Moorhead is still confident in its long-term shareholder distributions. He is projecting an 11-12% total annual yield, well above the industry average. The stock is currently trading at a 9% forward dividend yield.

Interest rates are falling but net interest income has remained solid. Coupled with the company’s sound fundamentals and price compared to its peers, it could present investors with a unique opportunity to buy low.

Are you bullish or bearish on Nordea Bank (NRDBY) over the next 12 months?

Login or Subscribe to participate in polls.

TOGETHER WITH BSEM

The medtech arena is not the easiest to navigate given how many kinds of companies are in it. It’s all about finding emerging players like BSEM who have successfully navigated the regulatory process (a real barrier to entry) and show real growth. 

Zack’s Small Cap Research recently increased its price target to $23.25, recognizing the company’s value after it reported Q1 financial results.

The firm believes is an opportunity to invest in a company that is both providing a vital service to the human population and providing economic value to shareholders when doing so. 

SURVEY THE STREET

Yesterday was a rough day for chip stocks, which shed over $500 billion in value over China-US trade war fears.

This comes after a Bloomberg report that detailed the Biden administration’s potential plans to enact a measure called the foreign direct product rule to curb chipmakers' ability to do business with China.

The report hit ASML’s stock hard—as of this morning, it is down approximately 15% for the week. Why is ASML being hit the hardest? Well, the company revealed in its Q2 report that its sales to China account for nearly half of the Dutch company’s revenue.

Will ASML recover, or will it continue to feel the impact of the US-China trade war?

Login or Subscribe to participate in polls.

Plus, Yesterday’s Poll + Results:

🟩🟩🟩🟩🟩🟩 Bullish 🐂

🟨🟨🟨🟨🟨⬜️ Bearish 🐻

What did you think of today's edition?

Login or Subscribe to participate in polls.

This message is a paid advertisement for BioStem Technologies Inc. (OTC: BSEM). The Street Sheet (SS) receives a flat fee totaling up to $3,750. Other than the compensation received for this advertisement sent to subscribers, The Street Sheet and its principals are not affiliated with BioStem Technologies Inc. The Street Sheet and its principals do not own any of the stocks mentioned in this email or in the article that this email links to.

The Street Sheet is a research service not owned or managed by registered brokers and therefore this site does not make any investment recommendations. The information provided in this newsletter is not guaranteed as to the accuracy or completeness. Each user of SS chooses to do trades at their sole discretion and risk. SS is not responsible for gains/losses that may result in the trading of these securities.

This newsletter includes paid advertisements. The source of all third-party content in which SS receives some sort of compensation is clearly and prominently identified herein as "ad", "Sponsored", or “Together With”. Although we have sent you these advertisements, SS does not specifically endorse any third-party product nor is it responsible for the content of the advertisement or the experience with the third-party advertiser. Furthermore, we make no guarantee or warranty about what is advertised.

All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns.

This communication from The Street Sheet is for informational purposes only. It is not intended to serve as a recommendation to buy, sell, or hold any security and is not an offer or sale of a security. Information contained within should not be perceived as a research report and is not intended to serve as the basis for any investment decision. Any third-party views reflected herein do not reflect the opinion of The Street Sheet. All investments involve risk and the past performance of a security does not guarantee future results or returns. There is always the potential for financial loss when investing in securities or other financial products. The information contained in this newsletter is subject to change without notice, and we do not undertake any obligation to update it. Readers are encouraged to conduct their own research and due diligence and seek advice from licensed professionals regarding their specific financial needs and circumstances. By reading this newsletter, you agree to hold us harmless from any and all losses, liabilities, costs, or expenses arising from your use or reliance on the information provided. The Street Sheet is reader-supported. When you buy through links on our site, we may earn an commission.

Reply

or to participate.